Insulation Tax Credits are available
The Inflation Reduction Act (IRA) is channeling an unprecedented $369 billion into energy-saving initiatives through tax credits, offering numerous benefits such as enhanced energy efficiency, lower energy bills, and increased home comfort.
These tax credits can be combined with local incentives for even greater savings! The IRA tax credits cover:
- Residential retrofit incentives
- New and retrofit commercial incentives
- New home incentives
- Efficient building envelopes through building codes
Here are some key highlights from the Act.
Residential Retrofit Incentives
The previous law’s credit is restored through 2022, with an enhanced credit amount applicable from January 1, 2023, to December 31, 2032:
- 30% credit on insulation and air sealing materials, up to $1,200 per year
- Credit available on an annual basis
- Home energy audits covered up to $150
New Home Incentives
- $2,500 builder credit for single-family homes that meet ENERGY STAR Version 3.2 and 2021 IECC prescriptive envelope standards
- $5,000 builder credit for homes that meet the DOE Zero Energy Ready Home standard
- Builder credit of $500 or $1,000 for multifamily units, increasing to $2,500 or $5,000 when prevailing wage requirements are met
- Previous law’s credit restored through 2022, with an enhanced credit amount applicable from January 1, 2023, to December 31, 2032
There are many components to this act and many ways you can save, and tax credits are subject to program changes. Our team is always happy to answer questions you may have.
